Real Estate Sales Drop Slightly

Residential sales in the Okanagan region of Peachland to Revelstoke cooled slightly in August to 882, an 8% drop from July sales of 961 and 14% fewer sales than August of last year.

Okanagan Mainline Real Estate Board President Tanis Read, says “Conditions still favour the seller, and will likely continue to do so until inventory grows or demand lessens,” adding, “While August is typically a slower month in terms of sales volume, this imbalance between demand and supply is propping home prices in the Okanagan and may lead to a more sustained drop in home sales if supply can’t catch up.”

Average price in August, at $489,130, was just 3% lower than July, and 5% higher than August of last
year. New listings stayed relatively consistent with the previous month, while days on market rose
slightly to 70 from 63 in July, but lower than 85 days this time last year. She says demand is likely to continue to be fueled by strong economic conditions and population growth, driving
consumer confidence and housing demand.

“We know there was a high volume of building permits taken out in 2016 and as construction on new builds is completed, supply will hopefully start to catch up to demand, which will, in turn, have a positive effect on affordability,” says Read.

Buyer origins continue to consistently track, with the vast majority, at 56%, from within the region, followed by 17% from the Lower Mainland/Vancouver Island and 11% from Alberta.